# Copper Prices Decline for Third Day on US Rate Hike Concerns

- URL: https://stocks.freetheai.org/news/copper-prices-decline-for-third-day-on-us-rate-hike-concerns-03fc18
- Published: 2026-10-15T04:28:29Z
- Category: commodities; sentiment: bearish; impact: medium
- Symbols: [COMEX:HG1!](https://stocks.freetheai.org/symbols/COMEX-HG1!)
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Copper futures dropped 1.18% to $6.58 per pound on Thursday, extending losses for a third consecutive session. The downturn was triggered by stronger-than-expected inflation figures in the United States, which reinforced expectations that the Federal Reserve may continue raising interest rates and reduce demand for industrial metals.

Higher interest rates raise borrowing costs across the economy, creating headwinds for economic growth and industrial activity. Because copper is heavily used in manufacturing and construction, concerns over slowing growth tend to directly weigh on copper consumption.

However, supply constraints in Chile, the top copper producer globally, could prevent deeper price falls. Labor strikes have disrupted operations at BHP Group's Escondida mine and Antofagasta Plc's Centinela mine, while severe weather affected Codelco's El Teniente open-pit operations. Meanwhile, long-term demand remains supported by expansion in data center infrastructure, semiconductor manufacturing, and battery energy storage systems.

## Key points

- Copper futures dropped 1.18% to $6.58 per pound, extending a three-session losing streak.
- Higher-than-expected US inflation reinforced expectations of further Federal Reserve interest rate hikes.
- Mining disruptions in Chile due to labor strikes and poor weather are restricting copper production.
- Demand continues to find support from data center infrastructure, semiconductors, and energy storage.

## Questions and answers

### Why are copper prices falling?

Copper prices are declining because higher-than-expected US inflation data strengthened expectations for further Federal Reserve interest rate hikes, which could slow economic growth and reduce metal demand.

### What is limiting further losses in copper prices?

Mine disruptions in Chile caused by labor strikes at BHP Group and Antofagasta Plc facilities, along with bad weather at a Codelco site, are tightening supply and preventing steeper price falls.

### Where is copper demand coming from?

Copper demand is being supported by long-term expansion in semiconductor manufacturing, data center infrastructure, and battery energy storage systems.